Board is Split on Pepsi Split, Says NY Post

[Stocks-to-Watch]

The board of Pepsico (PEP) is debating whether to split the company up, perhaps creating separate corporations out of its snack and beverage divisions, or having one company run the international business, and another the U.S. snack and beverage business, the New York Post reported today.

Some investors have been lobbying for a split — a tactic that has been embraced by other food companies like Kraft (KFT) and Sara Lee (SLE) in recent months. Separate companies, the argument goes, can adhere to more appropriate strategies and capital allocation plans, and investors can choose which stock to buy into based on their rick tolerance. Pepsi’s stock is basically flat for the year, and up just 5% in the past five years, versus 45% for competitor Coca-Cola (KO).

Pepsico CEO Indra Nooyi is also close to making two major international acquisitions, another source told the Post — information then contradicted by another source.

In any case, the rumors themselves are helping the stock this morning, which is up 2.2%.



Original Article Source by Barrons.com